Friday, September 5, 2008

Barack Obama is a fu*king idiot (on finance and economics)

I am currently listening to Obama give a speech in my great state of Pennsylvania. Not because I want to but because my fiance likes Obama and I respect that, sometimes lol. At anyrate Barack Obama was talking about Social Security and addressing a woman whose husband fought in war and made a living in the army, got injured in the army and now collects Social Security along with his pension. She says that the government now wants to take away his social security. Obama then says that he wants to make sure everyone has social security and that John McCain and other republicans want to take away Social Security and make privatized social security accounts. He then said what would happened if you invested this money and lost it.

Now let me clear a few things up Barack Obama before you go bashing perfectly sound economic theory. First off, in order for us to sustain social security for this generation and the next, as Obama would like to do, it would cost trillions of dollars in tax payer money, money that we do not have. And I don't know about you but I do not want to pump trillions of dollars into an already failing social security system. Like Brigid said in a wonderful blog, I do not want to share my piece of pie.

Now beyond the fact that it would cost a lot of money that we do not have to continue to invest in this black hole system, the privatized social security system would be much better for multiple reasons. This Mr. Obama is finance 101 and if you give me a few seconds perhaps you can wrap your mind around this. When you take my tax dollars and put it into social security I lose opportunity value on that money. Now opportunity value is a very simple thing to understand. It is simply the amount of money that I could have earned had I been able to invest that money instead of the government taking that money. It is the money that I consequently lose as a result.

So now Mr. Obama, the woman said that her husband paid into Social Security for roughly 25 years. Based on my grandfather's social security I would say that the mans earns about $1000 a month in social security. Based on the most recent tax data, which states that anything under $97,000 earned is taxed roughly $6,000 a year in social security. So let us suppose that over the past 25 years this man put $6,000 a year into Social Security meaning he would have paid $150,000 into social security (and yes I know that it would have been less in the earlier years but if you find the tax data I will figure it out). When planning for retirement they say that you should put away at least enough for the next 20 years (roughly until 85), and this is being conservative because this man was injured in war and will probably live much longer, so let's say he will now be receiving $1000 a month for the next 20 years, that will equal to $240,000 he will receive from Social Security. Now I do not know about you but if those books will not balance out, and will be overdrawn by about $100,000.

Now let us look at how much that man could have had in his own money had the government not taken it. Currently you can invest in your 401k at up to 12% so we will use 12% as the earning interest for this hypothetical privatized social security account. And we will stick with $6,000 a year since that is the amount the government would not be taking with this privatization. Ok so 6,000 a year for 25 years earning 12% a year will equal out to $896,000. Please allow that a moment to sink in, you would earn $896,000 if you controlled your own money. Now let us review.

$6,000 a year to the government for 25 years will get you an estimated $240,000 to use over 20 years.

$6,000 a year to yourself at 12% for 25 years will get you $896,000 to use over 20 years.

How much money do you lose by giving it to the government? $656,000 dollars.

Now Mr. Obama go back to that man and tell him this information and tell him what could have happened had we done the system the correct way, the responsible way, the privatized way. And tell future generations this information and tell them which one you would like them to pay into. I do not know about anyone else but give me $896,000 to use as opposed to $240,000. And remember the $240,000 comes to you $1,000 at a time every month, while the $896,000 can be used any way you would like and if one month you need to use a little more than you can cut back a little next month in order keep you on track. I would also like to point out that $896,000 gives you roughly $3,700 a month to live on. Also remember this, if you were contributing to your pension/401k or whatever other retirement account you have, then you also have that money to live on in addition to your privatized social security account.

Well Barack Obama, which one is better for you? Better yet, which one is better for America? Do not insult the intelligence of individuals who know better sir, and do not attack those who wish to keep their piece of the pie, and give others to make their own pie. And by the way, this plan also takes billions of dollars of responsibility off of the government that they would otherwise have to pay in social security benefits.

Perhaps tomorrow I will run for President on this one simple issue, after all, it will already make more American's be able to live comfortably in old age, and bring down the national debt.

For liberty and freedom,


  1. Why did you censor the word "fucking" in your title? Using a curse word and then censoring yourself using it is a contradiction. You're smarter than that.

  2. I censor words for various reasons. In general I do not censor my words, especially in my creative writing, and I tend to use strong curse words sparingly because the over use of a word loses its value. The blog title is purely out of the emotion I received as I wrote the blog and watched the speech.

    However, the reason for censoring the title of this post, and the title of any other post, besides it being my prerogative, is because this blog does not simply stay here on blogspot. When I hit publish it instantly publishes this blog in a least two other spots as well as being cataloged in search engines. I have readers come to this blog via many sources, some of them being big name news websites, and some of them simply being places that minors may be present. While I tend not to censor the post itself, the title takes a bit more censorship.

    Thanks for the half compliment on my intelligence. But my intelligence is not measured by my choice of curse words. And thanks for coming back and reading the blog, were not sure you have been reading since the last time you posted something on my blog. My only question...why did you load this particular post so many times? Trying to inflate my blog traffic?

  3. You make me giggle like a Japanese school girl in a "Hello, Kitty" store. You might also want to change the headline of your blog which reads, "I'm a broke college graduation who is going back to school." I haven't been near a computer for months and have been catching up.

    I wrote a very long response to your comments on our previous "discussions", but then decided against it. I enjoy reading your blog. Honestly. Keep posting.

    But, you're insane. I mean, come one. You support Ron Paul... enough said.

    Much love.

  4. That is not the headline of my blog, and I saw that a few days ago and have yet to change it. Perhaps I am a graduation, full of celebration and pomp and circumstance. Perhaps I was tired, made a typo, and haven't changed it yet.

    Feel free to post your other comment, honestly I do not even remember which conversation it was so it will be a surprise to me.

    And I am glad that you enjoy reading my blog. I write it for the enjoyment of others.

    Also, being a Ron Paul supporter does not make me insane, it makes me smart. The most sound economic and foreign policy of any President in my lifetime does not make a supporter insane, it makes a supporter fiscally conservative and responsible.

    You are from Maryland eh? We are not that far away, but I am sure you knew that. I am thinking that you may even know me but I will keep those theories to myself.

    Have a wonderful day and happy reading.

  5. I don't know you. I'm in graduate school at UMBC but I'm from Arizona. I spent my summer in Europe which is why I disappeared for so long. If I wanted to hide my identity, I would have hidden my IP address or posted my comments anonymously. Silly.

    Insane and delusional, both apply to you regarding your support for Dr. Paul. There is no room in politics for idealism. Once you realize this, we'll let you sit at the adult table.

    Until then, have an anointed day.

  6. I'm already at the adult table, we let you crazy socialists think you are at the adult table. I am not an idealist, I am a realist, a constitutionalist at best. But seeing how this blog has only made mention of Ron Paul once, my political beliefs about him are moot. However, I do write about other political topics that have no idealism to them, just fact. Stroll through the blog and you will see.

    And again, enjoy.


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